DeMaio: Pensions keep going up

Data shows big jump in $100,000-plus pensions

PENSION PAYOUTS FOR RETIRED WORKERS

2009 Recipients

More than $300K: 0

More than $200K: 8

More than $150K: 43

More than $100K: 285

2010 Recipients

More than $300K: 1

More than $200K: 10

More than $150K: 68

More than $100K: 487

San Diego  The number of retired San Diego city workers collecting more than $100,000 annually in retirement has risen to 487 — a 71 percent increase from a year earlier, according to pension data released Tuesday by City Councilman Carl DeMaio.

DeMaio, who is considering a run for San Diego mayor next year, held a news conference at City Hall to release the 2010 payout information which he received from the city pension system in response to a public records request. He held a similar press briefing in October to release the 2009 pension payouts as he campaigned against a proposed citywide sales tax hike.

The totals presented by DeMaio include each worker’s annual pension plus their annuity from the Deferred Retirement Option Plan, a controversial program that allows workers to collect a pension and salary at the same time. At least one retired worker said it was misleading to lump the two separate benefits together and call it a six-figure pension.

DeMaio said the sharp increase in the number of $100,000-plus annual payouts to retirees is further evidence that past changes to the pension system have done little to rein in pension costs.

“The news is not good,” he said. “Just when you thought the number of excessive pension payouts for the city government could not possibly get any higher, it has.”

Cost of living adjustments and more retirements result in the top tier growth.

Mayor Jerry Sanders, who has partnered with DeMaio on a proposed ballot measure to eliminate pensions for most new hires (excluding police officers) in favor of 401(k)s, said the news shouldn’t be considered shocking given that many current employees remain eligible for and recent retirees receive the top-tier pensions approved by past city leaders.

“You have a pension system that’s a vested right. You cannot change it,” Sanders said. “We’re attempting to make some changes with this new ballot proposition. You know, it’s easy to go out and demagogue an issue but when you’re actually running the thing and you have attorneys saying you can’t do anything about this, you have a state Constitution that says you can’t do anything about this.”

Sanders is a new member of the six-figure club. He receives a nearly $105,000 annual pension after 26 years in the police department; he chose not to receive further pension credit for his mayoral service.

Mick Gammon, a retired worker who spent 37 years in various city departments, said he doesn’t trust DeMaio as a legitimate source of information and called it unfair to lump DROP annuities with pensions.

“I get a sufficient pension, but that’s what I was promised,” Gammon said.

DeMaio released a list of the 2,000 highest paid pensioners as well as the top recipients among former public-safety workers although he redacted the individual’s names. The number of six-figure recipients increased from 285 in 2009 to 487 in 2010.